Singapore A Tropical Country In Southeast Asia Commerce Essay

Singapore is one of the tropical states in Southeast Asia that is surrounded by H2O In add-on to that, Singapore gets a batch of H2O volume from the rainfall it experience. As Times Magazine stated, “ an norm of 7.9 ft.

of rain falls on Singapore yearly, about 2A? times the planetary norm. ” ( Chowdhury, Singapore ‘s All Wet- TIME, 2009 ) . However, the H2O that is being collected and surrounds the state is the salty sort and can non be straight consumed and safe for human usage. In order to maximise the usage the usage of this natural resource, the Singapore authorities goes to extent where they recycle and purify the H2O they capture. These “ policies have developed an expertness in H2O direction that has spawned a host of profitable companies ” ( Chowdhury, Singapore ‘s All Wet- TIME, 2009 ) and one of the major companies in this industry is Hyflux.Hyflux is a Singaporean homegrown H2O intervention company that ” purifies waste- , salt- and rainwater ” ( Chowdhury, Singapore ‘s All Wet- TIME, 2009 ) . Hyflux provides a wide-ranging set of incorporate services in H2O and renewable resources, from research and development, membrane fabrication, procedure technology, technology, procurance and building to operations and care.

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Hyflux provides H2O desalinization and filtration solution for its clients and is a planetary leader in membrane engineering and applications for renewable resources and H2O solution. The company takes pride in its award winning membranes which is one of the company ‘s chief nucleus merchandises.

Company Vision

To be the taking company the universe seeks for advanced and effectual environmental solutions.

Company Mission

To supply efficient and cost-efficient solutions to run into our clients ‘ demands through invention and technological promotion.

Company Valuess

Boldness – Dare to woolgather, daring to make and make bold to stand outEntrepreneurship – Raising the entrepreneurial spirit, embracing challenge and maestro alterationSatisfaction – Exceed internal and external client satisfaction, take pride in work and present excellenceTestimony – Be the face behind the trade name, excel in concern behavior and embracing best patterns in corporate administrationHyflux has 2,000 staff worldwide ( Hyflux Ltd. , NA ) including “ 200 multidisciplinary membrane specializers, research workers and scientists ” ( Hyflux Ltd. , NA ) in the company ‘s webs of advanced centres and workss. Employees are widely diverse non merely in footings of the states they are from but besides in their old working background, civilizations and experiences. The diverse work force of Hyflux contributed greatly to the success of the company through high productiveness, originative thought and effectual and efficient determination devising.

Hyflux started concern and is established in Singapore in the twelvemonth 1989 and since so it has grew and built 1,000 workss in more than 400 states worldwide. Appendix 1.1 high spots some of the states in which Hyflux operates in. In the states they have workss and operate in, they provide different types of services and merchandises.

For illustration, in Dubai, they provide services in the sewerage intervention industry and supplying Kristal Membrane merchandises while in Thailand, the company operates in both wastewater renewal industry and chemical industry supplying Kristal and FerroCep membranes.The list of industry and membrane Hyflux provides based on the image in appendix 1.1 is shown in the tabular array below:The celebrity and repute of Hyflux grew bigger in Singapore and in the twelvemonth 2001, it became the first H2O intervention company in Singapore to be listed in the Singapore Stock Exchange.To hold a clearer position of the current fiscal standing of the company, a tabular array is shown below comparing last twelvemonth ‘s concluding twelvemonth studies and this twelvemonth ‘s studiesBeginning: Hyflux Year end intelligence release 2010 and 2009 ( Hyflux Ltd. , 2010 ) , ( Hyflux Ltd. , 2009 )The company has been increasing in gross in the twelvemonth 2010 because of major undertakings that are ongoing like the major works in China that has been in arrest for the past twelvemonth due to the economic downtturn. In add-on the company besides earns high gross from the populace and industrial sectors.

Beginning: Hyflux Year end intelligence release 2010 and 2009 ( Hyflux Ltd. , 2009 ) , ( Hyflux Ltd. , 2010 )

External and Internal Analysis

The SWOT analysis will be used in this study to understand the company ‘s internal strength and failings and besides its external chances and menaces.


One of the root strengths that Hyflux has is their Chief executive officer, Ms Olivia Lum who started the concern and its operation in the twelvemonth 1989. Ms Olivia Lum set strategic waies and made effectual and efficient determinations for the company which enabled them to turn a little sized company engaging merely 3 staff with the capital of S $ 20,000 to one being of the “ universe ‘s fastest-growing engineering goaded H2O solutions company ” ( Hyflux Ltd. , NA ) .

As a main executive officer, they “ develop and specify the organisation ‘s intent, aims, schemes, and long term programs ” ( Lussier, 2009 ) . Ms Lum has accumulated several accomplishments and cognition in the hydro-chemical, chemical science, wellness and entrepreneurship which enable her to do effectual and efficient strategic moves which leads to the company ‘s growing and success.Second, Hyflux hires 2,000 staff worldwide, in which a staff of “ 200 multidisciplinary membrane specializers, research workers and scientists “ ( Hyflux Ltd. , NA ) in their advanced centres in Singapore. Employees are great assets to any company and add more value when they are skilled, motivated and diverse. Even if Hyflux has all the progress engineerings and machines, it would be of no usage ( or unproductive ) without a human working behind it.

Hyflux employs “ passionate, gifted and ambitious people who are invariably willing to force the boundaries of the possible. ” ( Hyflux Ltd. , NA ) . Employees who take the enterprise and are driven are likely to add value to the company and its production compared to an employee who is being “ forced ” to make their occupation. Harmonizing to writers John Ivancevich and Lee Soo Hoon “ In most organisations in Asia, effectivity is measured by the balance of such complementary features as making ends, using the accomplishments and abilities of employees expeditiously and guaranting the inflow and keeping of well-trained and motivated employees.

” ( Ivancevich & A ; Hoon, 2002 ) . In add-on, holding a diverse work force who are specialized to make their undertaking contributes greatly on the company ‘s productiveness through the originative thoughts given from employees who are from different backgrounds and society.Furthermore, Hyflux owns award winning water-machinery and progress engineering which increases their popularity and the quality of their repute. This encourages more clients to spouse and/or purchase from Hyflux and besides encourages more investors to put in the company.


High cost on employees has accumulated a important addition in the operational cost of the company.

in order to actuate employees, Hyflux has to develop and financially honor their employees. However, the company is focused on employees excessively hence they are non looking at it as a cost but as an investing alternatively.Furthermore, the company is sing high cost in the operations itself and the fluctuation of exchange rates contributes to this job notably and that includes high loan rates from Bankss every bit good.


In Singapore, H2O intervention installations are encouraged by the authorities to provide the state with more of the natural resource and “ The first of the H2O understandings with Malaysia, which expires in 2011, is non likely to be renewed ” ( Chowdhury, 2009 ) therefore the authorities is back uping the growing and operations of Hyflux. As a affair of fact, the company has PUB, Singapore ‘s national H2O bureau, as a client and has built 4 major H2O desalinization workss under the direction of PUB. PUB has become one the largest clients of Hyflux which reflects the company ‘s good and sustainable relationship with the authorities.

In most states that Hyflux go into, the authorities has ever looked upon them with favour and a good relationship is formulated. For illustration, constructing the “ universe ‘s largest membrane-based saltwater desalinization undertaking in Magtaa, Algeria. ” ( Hyflux Ltd. , 2009 ) . This is supported by the local authorities and allowed them to be financially supported by national Bankss in Algeria.


As mentioned on the latest intelligence release by Hyflux, one of its menaces is the unpredictable alteration in the currency markets ( Hyflux Ltd. , 2010 ) .

An instability in the currency ( particularly in those wherein the company operates ) could roll up losingss for the company. In some parts of the universe, the supply, for illustration, could be more dearly-won than expected in the budget due to unstable exchange rates. In add-on, operational cost of the Hyflux Group as a whole can besides be unpredictable because of fluctuations in the currency.

One month ‘s operational budget and cost can be lower and the following month, disbursals could merely hit up.Another menace impacting the planetary operation of the company is the “ relentless high unemployment rate ” ( Hyflux Ltd. , 2010 ) in cardinal markets in the US and EU. If this goes on, the economic system of those markets will decidedly be affected chiefly on the involvement rates. As more people are unemployed, GDP decreases, taking to a lessening in the monetary values of goods and services. This in return will impact the exchange rates and investors will be encouraged to put in Hyflux, nevertheless in a smaller sum but so will be paid higher dividends and returns if the economic system picks up.

Object of concern for the company

One of the chief aims and schemes of Ms Olivia Lum is to be able to accomplish growing in the company by spread outing and making to all its key markets globally.

But in contrast, it is besides a challenge for the CEO to prolong its rapid growing ” ( Smith, 2004 ) .As the company is spread outing, it besides needs to engage and enroll new employees to pull off certain undertaking to increase the company ‘s productiveness. Currently, the company is sing a 3rd one-fourth addition in the measure of employees by “ 10 % to more than 2,200 ” ( Hyflux Ltd. , 2010 ) . CEO, Ms Olivia Lum, predicts and believes that there will be an upward tendency in the H2O solution industry hence recruiting and engaging productive, originative, effectual and efficient employees is an ideal undertaking for the company to undergo.However, harmonizing to the latest intelligence release from Hyflux, the company ‘s disbursement has gone up by 10 % to S $ 121.0 million and one major cause of an addition in cost is because of a higher disbursement on the work force.

This creates an issue of involvement because if the company wishes to spread out more locally and globally, it needs to keep or supervise its disbursement on the work force in order for the company to pass sagely on the country.

Outline Plan and Strategic Plan

An upward tendency in the water-solutions industry could intend that there will be more participants in the market and competition might increase hence Hyflux should look through at their bing competitory advantage and physique and better it so that it will be good for the company as a whole. In this study, the competitory advantage that will be tacked is the human resource of the company in relation to the growing of the company and its increasing company cost.The machines used, merchandise sold and services provided by Hyflux can be perchance imitated by other companies, but the procedure and the people behind all the engineerings and machineries care more hard to copy.That peculiar factor could take to an addition the value of the company ‘s merchandises and services.

This is considered as one of the company ‘s competitory advantages and holding effectual and efficient human resource is a stepping rock to growing. But how can the job of increasing cost while increasing the work force be solved or at least relieved?In a concern degree, one of the proposed strategic solutions is under external growing strategy- strategic confederations. This strategic confederation could be in the signifier of outsourcing some work to other companies in the state of operation or in other words, farm outing. But those occupations can be on the lower degree of operations like pull offing basic machinery or delivering of the goods. And the determination shapers and a higher degree of direction could be attained in the company itself as they are more trained to work toward the strategic end of the company.Outsourcing a low/no value added operation such as care of machinery, janitorial or constructing will be cheaper compared to engaging and enrolling for those countries. Agencies that provide human labour for outsourcing are normally specialised and trained in a certain country of work.

That, in itself, would diminish the sum of money that will be used to develop new recruits. This will besides diminish the cost of giving periphery benefits compared to giving excess lodging allowance to full clip employees in the company. Furthermore, alternatively of engaging employees at a the lower-end of the organisational concatenation and operations, the company could profit from the sum of money saved and so engage a few extremely specialised and educated employees or directors such as a R & A ; D specializer.


“ Outsourcing is undertaking with another company or individual to make a peculiar map ” ( CTQ Media, 2010 ) Outsourcing is a type partnership via a contract with other companies. Companies would outsource their engineering to companies who are more effectual in the country or some of them would outsource because they want to larn from the cognition and information that the other company has to offer, nevertheless in this instance, Hyflux is suggested to outsource their low and/or non-core value errands to bureaus that supplies such human resources. Outsourcing some of the basic work maps of the company will salvage the company some costs in clip and money. But alternatively the cost saved could be used in something more valuable like engaging a really skilled and specialised director for case.

To implement the scheme, directors and the human resource direction should look into the chief end of the company and its scheme. One of the ends of Ms Olivia Lum is “ to capture the growing chances in our key markets ” ( Hyflux Ltd. , 2010 ) . One manner to make this end is to increase the capacity of the human capital in purposes of increasing productiveness, more originative thoughts, more effectual and efficient determination shapers.

Furthermore, the human resource director should hold an thought of the current capacity of the work force. Is there an surplus in demand for employees or is there an surplus in supply? As Ms Lum pointed out, she is seeking to increase the company ‘s human capital for growing and to fix the company for an uptrend in the H2O industry ( Hyflux Ltd. , 2010 ) . And this consequence in an extra in demand and a possible deficit in supply which will take to enrolling specific employees and, as a suggested solution, outsource the company ‘s human capital.Following measure is to look into the companies where Hyflux could outsource their human capital.

A low/no added value maps in the company could include the building workers of the new workss, janitorial operations or bringing truck drivers. In all those industries, there are several bureaus that supply those labours. In SingaporeThe undertaking of the direction and human resource direction does non halt at that place.

In order for the subcontracted employees to be more effectual and efficient, they have to be oriented about the company. Even if those workers are impermanent and non a “ existent ” portion of the company, it is of import that they know the company ‘s values and civilization in order for them to intermix in and work with bing employees. And at the same clip, the leaders, directors and employees should be noted about the impermanent workers and seek to be more welcoming towards the clump.

By making so, the outsourced employees can larn from bing employees and frailty versa. This opens a platform of sharing of originative thoughts and cognition in the company.Once the employees who are contracted out starts to work, a leader under Hyflux could be assigned to look after the group to pull off and detect how the group is transporting on with their undertaking. Besides, this would bridge the communicating spread between them ( outsourced ) and the direction because they have a direct leader they could confer with with sing jobs at work and working issues.To sum it all up, the company should analyze its human resource foremost and so outsource those “ low/no value added to the nucleus concern of the company ” ( Ivancevich & A ; Hoon, 2002 ) . This would be a more inexpensive manner of acquiring the extra adult male power needed and gives the chance for the company to put more and concentrate more on engaging several extremely skilled employees who will greatly add value to the company ‘s nucleus concern, for illustration a extremely skilled and educated hydro-chemical scientist, who would lend to the development merchandises and in return attention deficit disorder to the growing of the company.

Controling and rating

To measure whether or non the strategic program implemented is a successful one, the assigned leader of the outsourced group and the group itself has to describe back to the directors and give feedback.

In add-on fiscal studies sing productiveness of the country along with the cost is besides observed. Is the cost that is generated by outsourcing deserving their production?Feedbacks are of import to hold an thought on what is go oning at a certain country of activity. It allows directors to hold an thought on how the operations with the outsourced group is making and if what they have done achieved what it is supposed to make in the first topographic point which it to diminish cost but increase productiveness and growing of the company. The assigned leader of the group continuously observes the behaviour and actions of the group which is accumulated until a specific clip frame so it is passed on to the directors or the human resource direction. This besides allows gives the directors an feeling about what the group has achieved and its defects which can be improved at a ulterior phase.Another signifier of a feedback is the fiscal analysis or ROI at the terminal of a fiscal year/quarter.

This will uncover if outsourcing a low-no value added operation really decreased cost and have improved in growing and productiveness. The ROI will foreground the budgeted sum, the existent sum spent and the result ( production ) of the “ investing ” . If the productiveness computation of the outsourced group is to transcend the cost spent on hiring and increases the returns on investing, so this is likely a all right indicant that the determination made to outsource is a success. However if the activity generates more cost and is non productive plenty, so it is a certain mark of the determination being uneffective.

Future Plans

Hyflux is traveling and taking on more composite H2O solution undertakings that will let them to derive more sustainable and long-run returns, higher gross and net incomes ( Hyflux Ltd. , 2010 ) .

This can be done with the competitory advantages such as strong work force, advanced thoughts and expended resources. The company is looking at more advanced ways to handle H2O and develop their merchandises so that it can make a much greater market.In order for directors to make this end, they have to look into their excising resources and maximise them in hopes of deriving and accomplishing economic systems of graduated table in the company excessively. Furthermore any strategic or operational determination that has been taken has to be communicated to the full company because this besides acts as way for the company. Taking outsourcing for illustration, if existing employees are non cognizant that there have been extra work force in the company that could assist them, and so they would be given to make the undertaking by themselves alternatively of maximising the outsourced human resource.

Last, strategic direction has to travel harmonizing to the chief end of the concern and acts a a way in which the company has to follow.

Reference List

Chowdhury, N. ( 2009, September 21 ) . Singapore ‘s All Wet- TIME.

Retrieved October 20, 2010, from Time Inc. Web site: hypertext transfer protocol: //,9171,1921608,00.htmlCTQ Media. ( 2010, NA NA ) .

Outsoursing- WHat is Outsourcing? Retrieved October 20, 2010, from Web site: hypertext transfer protocol: // Ltd. .

( NA, NA NA ) . Hyflux Brochure. Singapore.Hyflux Ltd.

( 2009 ) . A Solid Foundation. A World of Opportunities. Hyyflux Ltd. Annual Report. Singapore: Hyflux Ltd.

Hyflux Ltd. ( NA, NA NA ) . Dlobal Presence| Hyflux Ltd. Retrieved October 29, 2010, from Hyflux Ltd. Web site: hypertext transfer protocol: // Ltd.

( 2010, November 4 ) . News Release 2010. Singpore.Hyflux Ltd. ( 2009, November 4 ) .

News Release2009. Singapore: Hyflux Ltd.Ivancevich, J.

M. , & A ; Hoon, L. S.

( 2002 ) . Human Resource Management in Asia. Singapore: McGraw-Hill Education ( Asia ) .Lussier, R. N.

( 2009 ) . Management Fundamentalss 4e. Mason, Ohio: South-Western, Cengage Learning.Smith, J. L. ( 2004, June 8 ) .

The Moisture Merchant- Innnovators- TIME. Retrieved October 22, 2010, from TIME Inc. Web site: hypertext transfer protocol: //,28804,1995235_1995382_1995530,00.htmlAppendix


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